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Premium spirits company William Grant & Sons is banking on the affluent young to sell its single malts in India.
“India is getting premium with its whiskies, and it is younger consumers who are willing to experiment with our single malts rather than waiting to turn 40 to try our brands like Glenfiddich,” said Shweta Jain, Head of Marketing, William Grant.
The company has offerings at different price points in the hope that the new customers will, over time, move to its expensive single malts.
After setting up its marketing and distribution operations in India in 2013, William Grant has been importing its high-end whiskies. It currently reaches out to 65,000 outlets, which include bars, hotels and retail stores.
Long-term plan With a turnover of ₹120 crore, its flagship single malt is Glenfiddich (with a 34 per cent share) followed by other brands like Grant’s and Monkey Shoulder (a blended whisky).
Premium whisky attracts 160 per cent import duty, but the company hopes to lower costs over the long term by having IMFL (Indian manufactured foreign liquor) or BIO (Bottled in Origin) status for some of its brands.
“We are working on a long-term plan, where we will participate in the IMFL or BIO segment in India since import duties are high at 160 per cent,” Jain added.
CSD channel While it distributes its brands across several channels, it is the CSD (canteen stores department) that generates the maximum sales.
“The CSD channel is our biggest account, and generates the maximum sales. Last year, we sold 42,000 cases, which was about 24 per cent of our sales through this channel,” said Shweta Jain.
The duty-free segment is also a significant channel, where discounted prices have been a draw.
For instance, the 750-ml Glenfiddich bottle, which is priced at ₹5,200, sells in duty-free outlets at ₹2,800.
GST has had no impact on prices for the liquor industry.
“Life has not changed for us post-GST, since the same taxes — local sales tax, service tax and VAT — apply. Liquor is billed separately as there is no GST on it,” Jain added.
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